Crossing the Border with Asset Management

November 3, 2005 (PLANSPONSOR.com) - A study from FS
Associates and Telos-RCP finds that asset management firms in
Europe and the US are in agreement that, despite its
challenges, cross-border marketing of their services is an
important part of their overall sales strategy.

Although the firms surveyed in the study list their
quality staff and performance results as strengths, they
also listed quite a few concerns, according to a press
release.
The lack of adequate distribution channels was the
number one concern for US money managers, chosen by 37% of
firms surveyed for the study. It ranked third for European
money mangers, garnering 25% of their votes.
The difficulties in penetrating foreign markets due to
overcrowding (43%) and strength of competition (32%) were
the top challenges for asset management firms in Europe,
according to the release.

The number one step money managers in both Europe
(57%) and the US (41%) plan to take to remedy the
challenges of cross-border marketing is to improve their
contact with consultants and other gatekeepers and
intermediaries.
In addition, 43% of European firms responding to the
study and 26% of US firms said they plan to create a
joint-venture or strategic alliance with a local
distribution entity.
The plan to hire more experienced staff in foreign outposts
was also chosen as a remedy by 41% of money managers in
Europe and 22% of those in the US.
No money managers said the remedy was to abandon foreign
markets altogether.

In listing their current distribution strategies for
foreign markets, 73% of all firms surveyed said they
cooperate with other consultants.
Fifty-seven percent of firms said they manage their
foreign distribution from the home office, while 53% open
marketing offices local to their foreign market.
Working with financial intermediaries was a strategy listed
by 48% of money managers, and having a strategic alliance
with local firms that have distribution but no products was
listed by 36% of those surveyed.

Close to 70 European and US-based asset managers
responded to the survey used for the study.
Telos and its sister company RCP are rating agencies
specializing in qualitative ratings for asset managers,
mutual funds, and other asset management products and
services.
FS Associates is an international financial consulting firm
with a practice that focuses specifically on cross-border
strategic alliances.
Its Web site is
www.fsassociates.com
.